My analysis will be helpful since I am now in Estonia for a speech about economic reform, and I wrote a column that was published today by the nation’s main business newspaper.

But just in case you’re one of the few people in the world who isn’t fluent in the local language, the Mises Institute Estonia was kind enough to post an English version.

Here are some of the key points I made. I started by explaining one of Krugman’s main blunders.

Krugman’s biggest mistake is that he claimed that spending cuts caused the downturn, even though the recession began in 2008 when government spending was rapidly expanding. It wasn’t until 2009 that the burden of government spending was reduced, and that was when the economy began to grow again. In other words, Krugman’s Keynesian theory was completely wrong. The economy should have boomed in 2008 and suffered a recession beginning in 2009. Instead, the opposite has happened.

I then pointed out that Estonia’s long-run performance has been admirable.

Mr. Krugman has been much in the blogosphere of late. Just yesterday, he made it onto the pages of AOSHQ in a video of an economic conference in Spain where he basically got his ass handed to him by Pedro Schwartz;

One thought on “Estonia Economic Growth Model For US? #PaulKrugman Couldn’t Be Reached For Comment”

When you buy an insurance plan at a ridiculously high markup, you’re encouraging a system that charges exorbitant prices for everyone. As Paul Krugman puts it, “We are not a household. We are an economy. Your spending is my income and my spending is your income.”